Ethanol is currently available in blends of up to 10% (E10), but about 200,000 automobiles in New York State can run on up to 85% ethanol (E85), even though many of their drivers are unaware of this.

The E85 blend is practically unavailable in the north-eastern United States and currently, the nearest E85 service station to New York is over the border in Ottawa, Canada.

With many new US gasoline-fuelled automobiles now being designed as ‘flex-fuel’ vehicles that can handle E85 blends, the time has come to make such fuels more widely available, according to Pataki.

Last week, the governor outlined plans to soon make ethanol and biodiesel available in about 130 service stations throughout the state and to encourage the establishment of ethanol refineries in the state.

Previously, Pataki announced that biofuel producers would receive incentives from the New York State Energy Research and Development Authority (NYSERDA) to promote the construction of bio-refineries in New York State under a $US500,000 program.

Applicants will be eligible for grants of up to $US100,000 for the planning, design and construction of biofuel refining facilities, as well as other qualifying costs associated with construction and operations.

Pataki also issued an executive order requiring all state agencies and public authorities to increase their purchase and use of biofuels for heating their facilities and fueling their vehicles.

These bodies will be required to purchase and use biofuels for use in boilers, heating/cooling plants, with the aim of using 5% biofuel by 2012.

In addition, at least 2% of fuels used in the State fleet must be biofuels by 2007, with this percentage rising to 10% in 2012.

Pataki has also directed the State Department of Agriculture and Markets to work with farmers to identify the best locations to grow biofuel feedstock crops.

Ethanol can be made from a variety of crops and plant material. The fuel is very common in Brazil, where it is made from sugar. In the US, ethanol is made mainly from corn.

In the short term, the shift to biofuels is expected to provide a boost to farmers in New York State who will see an increased market for feedstocks used in biofuel production.

But Governor Pataki’s advisers say that rather than using a food crop, it would make more sense in the long term to use other feedstocks.

Soybeans, switch grass and willow have been identified as crops that can be grown competitively in the state that are suitable for biofuel production.

"There's as much as two million acres [800,000 hectares] of underutilised farmland in New York State that could be put into productive use growing energy crops, creating markets for our farmers, supporting jobs and rural economic development, and replacing imported petroleum with home-grown fuels and products," said state agriculture commissioner Nathan Rudgers.

Up to three ethanol plants are expected to begin production in New York State within the next year, including Northeast Biofuels in Fulton, Oswego County.

The Northeast Biofuels plant would be the largest ethanol plant in the region, with a 100 million gallon annual capacity.

The Fulton biofuel site also will be home to a 19 million litres per year biodiesel production facility built and operated by NextGen Fuel.